Apple may be taking some of the burden of assembling the new iMac off Chinese supply partners by performing parts of assembly in the U.S., as a number of newly-purchased standard units are showing an "Assembled in USA" notation usually reserved for made-to-order machines.

"Assembled in USA" notation found on a new 21.5-inch iMac. | Source: iFixit

While the markings don't necessarily mean that Apple is in the midst of transferring its entire assembly operation from China to the U.S., it does indicate that at least a few of the new iMacs were substantially assembled domestically. Besides built-to-order machines, the 21.5-inch iMacs are some of the first known examples of an Apple computer being assembled in the U.S., according to Fortune.

The publication noted that Apple's American assembly has been a topic on the company's Support Communities forum since 2006, with most threads concluding the markings are limited to the addition of extra components in an original order, or for refurbished products. However, the most recent post regarding the matter shows a standard iMac SKU purchased from authorized reseller B&H Photo bearing the "Assembled in USA" marking.

A new iMac purchased by a Fortune reader from the San Jose, Calif., Apple Store as well as the unit torn down by repair firm iFixit have identical labels.

As part of its duties, the U.S. Federal Trade Commission regulates manufacturers' "Made in USA" and "Assembled in USA" assertions, pointing out that that latter cannot be a simple "screwdriver" assembly where parts made overseas are bolted onto a near-finalized product.

From the FTC regarding the "Made in USA" standard (emphasis of example added):

Assembled in USA Claims

A product that includes foreign components may be called "Assembled in USA" without qualification when its principal assembly takes place in the U.S. and the assembly is substantial. For the "assembly" claim to be valid, the product?s last "substantial transformation" also should have occurred in the U.S. That?s why a "screwdriver" assembly in the U.S. of foreign components into a final product at the end of the manufacturing process doesn?t usually qualify for the "Assembled in USA" claim.

Example: A lawn mower, composed of all domestic parts except for the cable sheathing, flywheel, wheel rims and air filter (15 to 20 percent foreign content) is assembled in the U.S. An "Assembled in USA" claim is appropriate.

Example: All the major components of a computer, including the motherboard and hard drive, are imported. The computer?s components then are put together in a simple "screwdriver" operation in the U.S., are not substantially transformed under the Customs Standard, and must be marked with a foreign country of origin. An "Assembled in U.S." claim without further qualification is deceptive.
This suggests that there is at least some substantial assembly being performed in the U.S., though it is not clear what that entails or why. One reason could be the redesigned iMac's constrained supply, which CEO Tim Cook made note of in Apple's quarterly conference call in October.

As for Apple's future plans with domestic assembly, Cook said at the D10: All Things Digital conference in May that he wanted more American-made Apple products, but noted workforce limitations when compared to China.

"We will do as many of these things [in America] as we can do," Cook said, "and you can bet that we'll use the whole of our influence to do this."

Originally Posted by AppleInsiderare not substantially transformed under the Customs Standard

You have to look at the definition of "substantially transformed". The FTC site is a PR piece and isn't the legal definition. I remember Dell was in a lawsuit with HP about this with the net result that Dell's slapping of hard drives on in the US did qualify. IIRC, stuff like installing the CPU, loading of OS, flashing the BIOS, configuring apps and burn in testing did qualify as "substantial transformation"

I would really like to be able to choose built in America. I wouldn't mind slight extended order times even. We all know if Apple asked for it, Foxconn would return to the US or they could use one of the many US contract manufactures that are here. Most started here and are already here in California and other states. Yes Apple used to build in the US and even in Colorado. Great machines but the wrong CPU (PowerPC was a mistake never admitted as it didn't ever have market share. x86 and ARM both are clearly ISA's - Industry Standard Architectures) back then but this is now. The tool & Die comment about why not US? was the worst non truth - we pioneered high end tool and die and build spacecraft, telescopes and missiles that no other country can match. A iMac is not and issue nor are iphones - that's just plain silly. Great to see final being done here. It should all come back on shore asap.
And Apple should more of it's profits back to the US too. Step up to the plate Apple...

This is a classic dilemma. How many American holders of Apple shares truly want domestic manufacturing? How many really want Apple to "bring back" its profits?

In the first instance, large scale domestic manufacturing is very likely going to decrease the company's gross margin. In the second instance, Apple's tax bill will increase. Both scenarios will bring down $AAPL. How many Apple shareholders, however patriotic, are willing to make that sacrifice?

It will NOT happen.
To clarify, let's play "Choose your country of Origin".
Apple advertises their brand new iMac.
$1,799.00 - Made in China
$2,200.00 - Made in USA.
Same exact machine and specs. Understand that the $500 difference is probably optimistic and would most likely be more.
Which one are you going to buy?
If you pick the Chinese model, you're being honest. If you pick the US model, well then you're lying.
That's the reality. Steve Jobs was right when he told Obama that those jobs are not coming back.

Sourcinggate.....

"I'm way over my head when it comes to technical issues like this"Gatorguy 5/31/13

Assembly in the USA makes sense for big bulky things where the savings of overseas assembly isn't enough to offset the cost of shipping. PowerMac and Mac Pro towers and Xserves were (are?) assembled in Elk Grove, California (near Sacramento) and somewhere in Texas. If Apple decided to do the same with the new iMac for some reason (Mac Pro demand probably isn't keeping the plants very busy, and Xserves are gone) it wouldn't come as a huge surprise.

You can already do that today. It's called TAA Compliant, and it guarantees the parts are made in countries that have free trade agreements with the US (EU, NAFTA, Japan) or are third-world countries. Not China, Taiwan or Korea. It does not mean the company is American either, Samsung sells TAA parts. The Feds are typically required to do so, as are many Federal contractors.

When I was recently back in Bay Area, I saw Foxconn now, what appears to be a business presence, in a building at CA-237 and Great America Parkway. I am sure it is a business offices, but maybe they might be looking at utilizing some assembly building to handle some of the contract manufacturing back in the good old Valley.

It will NOT happen.
To clarify, let's play "Choose your country of Origin".
Apple advertises their brand new iMac.
$1,799.00 - Made in China
$2,299.00 - Made in USA.
Same exact machine and specs. Understand that the $500 difference is probably optimistic and would most likely be more.
Which one are you going to buy?
If you pick the Chinese model, you're being honest. If you pick the US model, well then you're lying.
That's the reality. Steve Jobs was right when he told Obama that those jobs are not coming back.

Your hypothetical scenario is unrealistic. I don't believe there would be a difference of $500 in the cost of manufacture between the two countries.

I would really like to be able to choose built in America. I wouldn't mind slight extended order times even. We all know if Apple asked for it, Foxconn would return to the US or they could use one of the many US contract manufactures that are here. Most started here and are already here in California and other states. Yes Apple used to build in the US and even in Colorado. Great machines but the wrong CPU (PowerPC was a mistake never admitted as it didn't ever have market share. x86 and ARM both are clearly ISA's - Industry Standard Architectures) back then but this is now. The tool & Die comment about why not US? was the worst non truth - we pioneered high end tool and die and build spacecraft, telescopes and missiles that no other country can match. A iMac is not and issue nor are iphones - that's just plain silly. Great to see final being done here. It should all come back on shore asap.
And Apple should more of it's profits back to the US too. Step up to the plate Apple...
But YES I would vote for Apple Mac's with $$$.

You would wait longer, I would actually pay more. Not huge amounts, but I would be in for a a few percent.

My guess would be that their new "friction-stir welding" technology involved in the assembly of the new iMacs may be something they aren't allowed to export, or perhaps were requested NOT to export, to China.

Even if it costs 22% more to make in the US, that only translates to a 22% more expensive product if 100% are made in the US. If 25% are made in the US and 75% elsewhere, it's only 6% more expensive for the consumer.

i.e. use the 3rd world workers to subsidise 1st world workers. Lol, I wonder what the morality of that one is...

Pretty funny to see AI put in quotes "Assembled in America" and the picture right underneath says "Assembled in USA". Good ol' AI...

Ironic, isn't it?

Quote:

Originally Posted by NotRichard

My guess would be that their new "friction-stir welding" technology involved in the assembly of the new iMacs may be something they aren't allowed to export, or perhaps were requested NOT to export, to China.

Indeed, this friction welding thing, somehow I think that could be a reason for it. Not that China couldn't do that (not all iMacs are Assembled in USA, but maybe China couldn't handle the amount, and there are plants in the US that can do this as well.

That must mean that the whole packaging is done in the US as well.

Quote:

Originally Posted by konqerror

A Xerox 6600YDN printer, the Buy American version, is $672. The comparable China made 6600DN is $550. That's a 22% premium. For a $1800 iMac, that would work out to be $2200.

It will NOT happen.
To clarify, let's play "Choose your country of Origin".
Apple advertises their brand new iMac.
$1,799.00 - Made in China
$2,299.00 - Made in USA.
Same exact machine and specs. Understand that the $500 difference is probably optimistic and would most likely be more.
Which one are you going to buy?
If you pick the Chinese model, you're being honest. If you pick the US model, well then you're lying.
That's the reality. Steve Jobs was right when he told Obama that those jobs are not coming back.

There are equivalent manufacturing strategies just as you illustrate with some well respected , famous high end guitar makers. The purchaser has the option of US built, Mexican or Indonesian in most cases, at three diffent price points. Those made in the USA carry not only a hefty price premium but also a prestige value and are definitely considered of higher quality in the eyes of the afficianados and pundits alike. I'm pretty sure the sales of the high end products made in the USA are doing well.

From Apple ][ - to new Mac Pro I've owned them all.Long on AAPL so biased"Google doesn't sell you anything, Google just sells you!"

It will NOT happen.
To clarify, let's play "Choose your country of Origin".
Apple advertises their brand new iMac.
$1,799.00 - Made in China
$2,299.00 - Made in USA.
Same exact machine and specs. Understand that the $500 difference is probably optimistic and would most likely be more.
Which one are you going to buy?
If you pick the Chinese model, you're being honest. If you pick the US model, well then you're lying.
That's the reality. Steve Jobs was right when he told Obama that those jobs are not coming back.

Taiwan Semiconductor is looking at building their first plant here in the US, to not only satisfy Apple's demand, but all other domestic customers as well. Aegis, a Mumbai based call center company is building a Dallas metroplex and will add 1K new jobs as part of a US deal it made to hire workers. Many domestic and foreign cars are parts manufactured here in the US with assembly. The idea is that if it is assembled in America vs. China, Taiwan, etc., then it will have a badge of excellence and quality, and more and more people will be looking for it and expect it, therefore increasing demand for that seal of approval and lowering any additional temporary domestic costs that it may require. To say "jobs are not coming back", is an ignorant blanket statement that needs to be quantified.

It will NOT happen.
To clarify, let's play "Choose your country of Origin".
Apple advertises their brand new iMac.
$1,799.00 - Made in China
$2,299.00 - Made in USA.
Same exact machine and specs. Understand that the $500 difference is probably optimistic and would most likely be more.
Which one are you going to buy?
If you pick the Chinese model, you're being honest. If you pick the US model, well then you're lying.
That's the reality. Steve Jobs was right when he told Obama that those jobs are not coming back.

I'm an American and I could care less where my electronics or other gadgets are assembled. Where in the USA would you get the level of workforce needed to crank out all the iPhones a s iPads Apple sells? I suppose they could bring back manufacturing of iMacs and MacPros but it seems to me that would be more symbolic than good business. Besides people seem to forget the "Designed in California" part. The majority of Apple's designers and engineers, plus all product, marketing, operations support (higher paying jobs) work in the USA. I've seen the videos iPhone and iPads being assembled by hans at Foxconn. How many Amerians would do that kind of work? Especially when these days they'd probably make more getting unemployment.